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What is the Electricity (Amendment) Bill?
The Electricity (Amendment) Bill, a key bill of the Bharatiya Janata Party (BJP)-led central government, aims to bring reforms in India’s power sector. It proposes certain amendments to the Electricity Act, 2003. The bill seeks to delicense the power distribution and allow private sector companies to enter the sector and compete with state-owned firms.
Key specifications of the bill
The bill proposes a framework to allow consumers to choose between different service providers. It provides for the formation of the Electricity Contract Enforcement Authority (ECEA), which will deal with contract-related disputes in the electricity sector. Further, the bill proposes penalties in case of non-compliance by licensees in meeting the obligations. It requires all licensees to purchase or produce a minimum specified quantity from renewable energy sources as a percentage of their total electricity consumption. A selection committee would be constituted to appoint the chairperson and members of the Appellate Tribunal (APTEL), the central and state regulatory commissions (CERC, SERCs) and the ECEA, according to the bill.
A timeline of events
The Electricity Act was passed by the Indian Parliament in 2003. It covers issues related to the generation, distribution, transmission, and trading of power in the country. The Centre is expected to introduce the Electricity (Amendment) Bill in the 2022 monsoon session of the Parliament. The session is due to begin on July 18 and will commence on August 13.
Opposition to the bill
Several bodies and political parties have opposed the Electricity (Amendment) Bill, 2022. Ahead of the monsoon session 2022, the All India Power Engineers’ Federation (AIPEF) wrote to the Union Power Minister R K Singh and Chief Ministers of all states, requesting to stop the bill. The federation suggested the government hold discussions with electricity sector workers and power consumers. The bill faces criticism that it would dilute the power of the states and shift it to the Centre and its agencies. Critics further say the bill allows private players an easy entry into the electricity sector, thus granting them an undue advantage.
Key specifications of the bill
The bill proposes a framework to allow consumers to choose between different service providers. It provides for the formation of the Electricity Contract Enforcement Authority (ECEA), which will deal with contract-related disputes in the electricity sector. Further, the bill proposes penalties in case of non-compliance by licensees in meeting the obligations. It requires all licensees to purchase or produce a minimum specified quantity from renewable energy sources as a percentage of their total electricity consumption. A selection committee would be constituted to appoint the chairperson and members of the Appellate Tribunal (APTEL), the central and state regulatory commissions (CERC, SERCs) and the ECEA, according to the bill.
A timeline of events
The Electricity Act was passed by the Indian Parliament in 2003. It covers issues related to the generation, distribution, transmission, and trading of power in the country. The Centre is expected to introduce the Electricity (Amendment) Bill in the 2022 monsoon session of the Parliament. The session is due to begin on July 18 and will commence on August 13.
Opposition to the bill
Several bodies and political parties have opposed the Electricity (Amendment) Bill, 2022. Ahead of the monsoon session 2022, the All India Power Engineers’ Federation (AIPEF) wrote to the Union Power Minister R K Singh and Chief Ministers of all states, requesting to stop the bill. The federation suggested the government hold discussions with electricity sector workers and power consumers. The bill faces criticism that it would dilute the power of the states and shift it to the Centre and its agencies. Critics further say the bill allows private players an easy entry into the electricity sector, thus granting them an undue advantage.
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